[Edaily Reporter Lee So-Hyun ] SOOP(067160)The company will cancel 18.9 billion won worth of treasury stock to enhance shareholder value. Following the purchase of treasury stock by key executives last June, the company is now taking concrete steps to return value to shareholders, thereby reinforcing its commitment to responsible management.

SOOP announced on the 7th that it held a board of directors meeting on the 4th and decided to cancel 306,375 common shares of treasury stock held by the company. The estimated value of the cancellation, based on book value, is approximately 18.9 billion won, and the cancellation is scheduled for the 10th.

The shares to be canceled are treasury shares that SOOP had previously acquired and held. They account for approximately 2.7% of the total issued shares.

The total number of issued shares will decrease as a result of the treasury stock cancellation. However, since the treasury stock being canceled was acquired within the scope of distributable earnings, the company’s capital will not decrease.

This decision is a measure aimed at enhancing shareholder value and returning value to shareholders. SOOP’s key executives demonstrated their commitment to responsible management by purchasing treasury stock on the open market last June. Subsequently, during the second-quarter earnings announcement, they indicated they would finalize plans for utilizing the treasury stock within the year, and this cancellation is being carried out as part of that initiative.

SOOP has also outlined a sustained shareholder return policy. The company has stated its intention to pay cash dividends amounting to at least 25% of its consolidated net income over the next three years.

SOOP plans to strike a balance between shareholder returns and securing a foundation for future growth. It will also continue its strategy to strengthen the competitiveness of its core platform business, including revitalizing the ecosystem of streamers and users and enhancing its service and revenue structures.

A SOOP spokesperson stated, “This treasury stock cancellation is a decision aimed at shareholder returns and enhancing shareholder value,” adding, “We will strengthen responsible management and communication with the market, and solidify the foundation for growth in our core platform business.”